A bus pulls into its stop at Ministry Saint Clare's Hospital in Weston in January. Ministry Health Care plans a reduction in workforce, the organization announced Tuesday. / Dan Young/Daily Herald Media

Written by

Gannett Wisconsin Media

Ministry Health Care plans to lay off between 225 and 250 full-time employees, citing a decline in patients and reimbursement rates as well as the impact of the federal sequestration bill.

Ministry is the parent of Menasha-based Affinity Health System, which operates St. Elizabeth Hospital in Appleton and Mercy Medical Center in Oshkosh. Affinity employs about 3,900 people across all of its operations.

Geoffrey Huys, a spokesman for Ministry Health Care did not provide any specifics about the job cuts but said it would affect Affinity.

Central Wisconsin facilities operated by Ministry include Saint Clare’s Hospital in Weston, Saint Joseph’s Hospital in Marshfield, Saint Michael’s Hospital in Stevens Point and Good Samaritan Health Center in Merrill.

In a statement released Tuesday afternoon, Ministry said the workforce reduction is driven by high-deductible health insurance plans that have led to decreased demand for physician and outpatient services.

Sequestration federal budget cuts that have resulted in a $10 million annual reduction in payments to Ministry for Medicare services, Ministry said.

The layoffs will “increase productivity by better aligning the organization’s size to the current and future decreased patient volumes and reimbursement,” Ministry said.

Steve Brenton, president and CEO of the Madison-based Wisconsin Hospital Association said Meriter hospital in Madison also has laid off employees because of Medicare funding cuts.

He said sequestration cuts are having a $100 million annual impact on Wisconsin hospitals.

“For those organizations with employed physician practices, the 2 percent cut is a big hit on the ambulatory side also,” Brenton said. “I would guess that’s between $25 million and $30 million statewide annually.”

Nick Desien, president and CEO of Ministry, in a statement said, “coming to this conclusion has not been easy,” N “We recognize that a decision to reduce the size of our workforce will impact the lives of many of our friends and colleagues. However, it is necessary to continue our mission of providing the highest quality of care to our patients, especially the poor and vulnerable, without a disruption in services.

Brenton said WHA has been meeting with federal lawmakers, asking for help to stop cutting Medicare provider payments as a budget reduction strategy.

“We seem to have made some headway (with no new cuts) but I’m not optimistic about undoing the sequester,” he said.

Ministry Health Care serves more than 1.1 million people across Wisconsin and eastern Minnesota with 15 hospitals, 47 clinics, and more than 12,000 employees and associates, including 650 physicians and advanced practice clinicians. Ministry Health Care recently was acquired by Ascension Health, the largest Catholic and not-for-profit healthcare system in the nation.